How to buy ASX shares from New Zealand

The ASX (Australian Securities Exchange) is more than ten times the size of the NZX by market value, with around 2,000 listed companies and funds. For New Zealand investors it adds the big banks, global miners, healthcare giants and a far deeper range of mid-sized companies. This guide covers how to buy ASX shares from New Zealand and the tax and currency points that catch people out.

Why New Zealanders buy ASX shares

• Breadth. Sectors that barely exist on the NZX, such as mining, large-cap banking and biotech, are well represented in Australia.
• Familiarity. Many ASX companies operate in New Zealand too, so their brands and businesses are easy to follow.
• Tax treatment. Most Australian-resident companies listed on the ASX are exempt from New Zealand's foreign investment fund (FIF) rules, which makes them simpler to own than US or European shares. See the FIF guide.
• Same time zone, roughly. Sydney is usually two hours behind New Zealand, so the ASX trades during the New Zealand working day.

How to buy: your options

Through a New Zealand platform

Most New Zealand investing apps and bank share-trading services now offer ASX shares. This is usually the easiest route: you sign up once, verify your identity once, and see NZX and ASX holdings together. Check whether the provider holds your ASX shares through a custodian or registers them to you with your own HIN (see below).

Through an Australian broker

Some Australian brokers accept New Zealand residents. This can give you shares registered in your own name with a HIN and sometimes lower fees on larger trades. Expect a longer sign-up and the need for an Australian dollar bank account or currency conversion on every deposit.

Your HIN and CHESS

Australia's settlement system is called CHESS. Shares held directly in your name sit under a HIN (Holder Identification Number), which belongs to you and moves with you between CHESS-sponsored brokers. Shares held through a custodian are registered in the custodian's name instead, with your ownership recorded in their books.

Both are legitimate. A HIN gives you a direct relationship with each company's share registry, which can be useful for dividend reinvestment plans and voting. Custodial holdings are often cheaper and allow fractional shares.

Currency: the hidden cost

ASX shares are priced in Australian dollars. Every purchase means converting NZD to AUD, and every sale or dividend converts back unless you keep an AUD balance.

• Watch the exchange margin. Platforms usually add a margin on top of the mid-market rate. On a $10,000 purchase, a 0.5% margin is $50 each way, often more than the brokerage fee.
• Currency moves change your return. If an ASX share rises 5% but the Australian dollar falls 5% against the New Zealand dollar, your return in NZD is roughly zero. Our guide to how the NZ dollar moves shares explains the wider effects.

Trading hours in New Zealand time

The ASX's normal session runs from about 10:00am to 4:00pm Sydney time, which is noon to 6:00pm in New Zealand for most of the year. There's an opening auction just before 10am and a closing auction just after 4pm Sydney time. The full schedule, including the weeks when daylight saving makes the gap three hours, is in our trading hours guide.

Dividends: withholding tax and franking

Australian companies often pay franked dividends, meaning the company has already paid Australian tax on the profit. For New Zealand residents:

• Fully franked dividends have no Australian non-resident withholding tax deducted.
• Unfranked dividends have Australian withholding tax deducted, generally limited to 15% for New Zealand residents under the double tax agreement.
• Franking credits can't be claimed in New Zealand. They're valuable to Australian residents but not to you.
• You declare the dividend as income in New Zealand and may be able to claim a credit for Australian tax withheld.

Some Australian companies with New Zealand operations, ANZ being the best-known example, can attach New Zealand imputation credits to their dividends, which New Zealand residents can use. Read imputation and franking credits explained for detail.

Companies listed on both exchanges

A number of large companies are listed on both the NZX and the ASX, such as Fisher & Paykel Healthcare, Auckland International Airport and Infratil. You can often choose which market to buy on. Our list of dual-listed NZX and ASX companies explains how to choose.

Frequently asked questions

Can New Zealanders buy ASX shares?

Yes. Most New Zealand investing platforms and bank share-trading services offer ASX shares, and some Australian brokers accept New Zealand residents.

Do I pay FIF tax on ASX shares?

Usually not. Shares in companies on the official ASX list that are Australian resident, maintain a franking account and aren't stapled are exempt from New Zealand's FIF rules. ASX-listed funds (ETFs) and non-Australian companies listed on the ASX don't qualify. Dividends are still taxable.

Can I use Australian franking credits in New Zealand?

No. Franking credits are only usable by Australian taxpayers. Fully franked dividends paid to New Zealand residents do avoid Australian withholding tax, though.

What time does the ASX open in New Zealand?

For most of the year the ASX opens at around noon New Zealand time and closes at about 6pm, because Sydney is two hours behind. The gap is three hours for about a week each spring when New Zealand starts daylight saving before Australia does.

Is it better to buy a dual-listed company on the NZX or ASX?

It depends on the currency you want, trading volume and fees. Liquidity is often higher on the company's home market. If you want New Zealand dollar exposure, buying on the NZX avoids conversion costs.